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Unimech Aerospace and Manufacturing files draft papers for Rs 5 billion IPO
Industry News- Aug 21,24
The IPO is priced at Rs 5 per equity share and includes a fresh issue of shares worth up to Rs 2.5 billion, along with an offer for sale of shares worth up to Rs 2.5 billion by the Promoter and Promoter Group Selling Shareholders.
Bengaluru-based Unimech Aerospace and Manufacturing Limited, a leader in high-precision engineering solutions for the aerospace, defense, energy, and semiconductor sectors, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 5 billion through an initial public offering (IPO).
The IPO is priced at Rs 5 per equity share and includes a fresh issue of shares worth up to Rs 2.5 billion, along with an offer for sale of shares worth up to Rs 2.5 billion by the Promoter and Promoter Group Selling Shareholders. Additionally, a reserved portion is included for eligible employee subscriptions.
The offer for sale will see equity shares offloaded by several shareholders: Rs 450 million each by Ramakrishna Kamojhala, Mani P, and Rajanikanth Balaraman; Rs 300 million by Preetham S V; and Rs 850 million by Rasmi Anil Kumar.
The funds raised from the fresh issue will be utilized as follows:
- Rs 325 million for capital expenditure on machinery and equipment for expansion.
- Rs 252 million for working capital needs.
- Rs 439 million for additional capital expenditure on machinery and equipment.
- Rs 447 million for further working capital requirements.
- Rs 400 million for the repayment or prepayment of certain borrowings.
- The remainder for general corporate purposes.
Recently, Unimech Aerospace secured Rs 2.5 billion from investors like Steadview Capital Mauritius Ltd, ValueQuest, and Evolvence through private placement financing.
The IPO will follow a book-building process, with 50% of the net offer reserved for qualified institutional buyers on a proportionate basis, at least 15% for non-institutional bidders, and no less than 35% for retail individual investors.
(Mint)
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